The Central Bank of the Bahamas published a survey-based report in its Quarterly Economic Review on the gross economic contribution of the Bahamian financial sector in 2024. It estimates the sector accounts for 15%–20% of GDP and finds that activity remained subdued as global regulatory changes and other externalities constrained new licensing, while domestic intermediation increased and international business adjusted. Total taxes and fees received by the Government rose by BSD 19.6 million (8.5%) to BSD 249.9 million, with licence and registration fees up 9.9% to BSD 104.3 million and transaction taxes (mainly stamp levies) up 7.5% to BSD 145.6 million. Among banks and trust companies, the number of licensees fell by 5 to 192, while private trust companies increased by 11 to 180; domestic banking assets grew 3.6% to BSD 12.1 billion and international banking assets edged up 0.1% to BSD 108.0 billion. Employment at banks and trust companies declined by 35 (1.0%) to about 3,646 and total expenditure increased by BSD 73.1 million (8.5%) to BSD 930.1 million; credit union assets expanded 4.6% to BSD 517.8 million across eight regulated entities, and the number of licensed insurers, brokers and agents fell by 10 to 147 even as domestic insurers’ assets rose 8.4% to BSD 1,970.6 million. The report also recaps 2024 supervisory and infrastructure initiatives, including revised supervisory guidelines, a climate resilience survey, and the establishment of a dedicated Crisis Management and Resolution Unit, alongside a memorandum of understanding to operationalize the Bahamas Financial Stability Council. Basel II and III implementation progressed with Dividend Regulations, Liquidity Risk Regulations and Guidelines, and Large Exposure Regulations, supported by draft reporting guidance and revised fitness and propriety guidelines; payments and market infrastructure work included draft Regulatory Sandbox Guidelines for consultation, SandDollar Wallet 2.0 enhancements launched in May 2024, a fast payment system targeted for end-2026, tools to monitor SWIFT payment flows planned for 2025, an ISO 20022-compliant Real-Time Gross Settlement system on track for an April 2025 launch, and a new Bahamas Government Securities Depository fee structure expected in 2025.
Central Bank of the Bahamas 2025-06-17
Central Bank of the Bahamas publishes 2024 financial sector contribution report showing government receipts up 8.5% to BSD 249.9 million
The Central Bank of the Bahamas' Quarterly Economic Review highlights the financial sector's contribution to GDP, estimating it at 15%-20% for 2024, with subdued activity due to global regulatory changes. Government revenue from taxes and fees increased by BSD 19.6 million to BSD 249.9 million, while domestic banking assets grew 3.6% to BSD 12.1 billion. The report details supervisory and infrastructure initiatives, including Basel II and III implementation, a Crisis Management and Resolution Unit, and enhancements to the SandDollar Wallet.